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Jan 31, 2020

Veeva Q4 2020 Earnings Report

Veeva's Q4 2020 results were announced, demonstrating revenue growth and customer expansion.

Key Takeaways

Veeva Systems Inc. reported strong fiscal fourth-quarter results, with a 34% increase in total revenues year-over-year. Subscription services revenues also saw a significant increase of 33% compared to the previous year. The company's focus on customer success and innovation in both established and new markets drove the positive results.

Total revenues for the fourth quarter reached $311.5 million, a 34% increase year-over-year.

Subscription services revenues for the fourth quarter were $254.1 million, up 33% year-over-year.

Fourth quarter net income was $66.2 million, compared to $71.2 million one year ago.

Non-GAAP net income for the fourth quarter was $85.5 million, an increase of 20% year-over-year.

Total Revenue
$312M
Previous year: $232M
+34.1%
EPS
$0.54
Previous year: $0.45
+20.0%
Subscription Revenue Retention
121%
0
Customer Count
861
Previous year: 719
+19.7%
Gross Profit
$217M
Previous year: $168M
+29.4%
Cash and Equivalents
$477M
Previous year: $551M
-13.5%
Free Cash Flow
$39.2M
Previous year: $29M
+35.1%
Total Assets
$2.27B
Previous year: $1.65B
+37.4%

Veeva

Veeva

Veeva Revenue by Segment

Forward Guidance

Veeva provided financial guidance for the fiscal first quarter ending April 30, 2020, and for the fiscal year ending January 31, 2021.

Positive Outlook

  • Total revenues between $327 and $328 million for Q1 2021.
  • Non-GAAP operating income between $117 and $118 million for Q1 2021.
  • Non-GAAP fully diluted net income per share between $0.59 and $0.60 for Q1 2021.
  • Total revenues between $1,400 and $1,405 million for FY 2021.
  • Non-GAAP operating income of roughly $500 million for FY 2021.

Challenges Ahead

  • Veeva is not able to provide GAAP targets for operating income for Q1 2021.
  • Veeva is not able to provide GAAP targets for fully diluted net income per share for Q1 2021.
  • Veeva is not able to provide GAAP targets for operating income for FY 2021.
  • Veeva is not able to provide GAAP targets for fully diluted net income per share for FY 2021.
  • The effect of excluded items may be significant.

Revenue & Expenses

Visualization of income flow from segment revenue to net income