Q2 2025 Earnings Summary
Reported on Aug 28, 2024 (After Market Close)
Pre-Earnings Price$199.35Last close (Aug 28, 2024)
Post-Earnings Price$214.19Open (Aug 29, 2024)
Price Change
$14.84(+7.44%)
- Veeva Systems is gaining increased market share in the CRM space due to strong execution and structural advantages over competitors like Salesforce, with 15 customers live on their Vault CRM, and a top 20 pharma customer set to be live by the end of next year in over 50 countries. This positions Veeva well ahead of competitors, who may take 2 to 4 years to catch up.
- Veeva has the broadest offering in the clinical space, including a full clinical operations suite and a full clinical data management suite, allowing them to serve both large and small companies. This comprehensive product portfolio, combined with disciplined execution and a systematic approach to product development, provides significant growth opportunities.
- Veeva is experiencing improving financial performance, with operating margins reaching over 40%, the highest in 3 years, driven by a mix shift towards higher-margin subscription revenues and efficient operations. This reflects the company's ability to deliver value to customers while maintaining operational efficiency, enhancing profitability.
- Increased competition from Salesforce, particularly around AI functionalities in the CRM space, could pose a risk to Veeva's growth. Salesforce is developing industry-specific products with AI features, and their focus on this market may challenge Veeva's position.
- Lower billings guidance for the third quarter indicates potential slowing growth. The guidance implies about 5% year-over-year growth in Q3, compared to more consistent growth in prior years, partly due to tougher comparisons and billing term changes that affect renewal timings.
- Adoption of Veeva's new products may take longer than anticipated, delaying revenue recognition from these offerings. Customers need time to adjust to fundamentally new data approaches, such as those in Compass Prescriber and National, and may not prioritize these changes immediately.
Research analysts covering VEEVA SYSTEMS.