Earnings Highlights and Review: Veeva's Quarterly Sales Jumped 32%; Earnings Rocket 188%

Research Desk Line-up: HealthEquity Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 16, 2017 / Pro-Trader Daily publishes post-earnings coverage on Veeva Systems Inc. (NYSE: VEEV) following the Company's posting of its first quarter fiscal 2018 earnings results on May 25, 2017. The provider of cloud-based software services for the life sciences industry outperformed sales and earnings expectations and also raised its revenue guidance for fiscal 2018. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Healthcare Information Services industry. Pro-TD has currently selected HealthEquity, Inc. (NASDAQ: HQY) for due-diligence and potential coverage as the Company announced on June 06, 2017, its financial results for Q1 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on HealthEquity when we publish it.

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Earnings Reviewed

Veeva's total revenues for its fiscal first quarter ended April 30, 2017 surged 32% to $157.9 million compared to revenue of $119.8 million in Q1 FY17.

During Q1 FY18, Veeva's Subscription services revenues rose 33% to $127.3 million, up from $96.0 million in Q1 FY17. The Company's Professional services revenue totaled $30.64 million, reflecting an increase of 29% compared to revenue of $23.73 million in the prior year's corresponding quarter

Veeva's total gross margin for Q1 FY18 was 71%, an increase of over 300 basis points compared to the year ago same quarter. This improvement was driven primarily by the rise in both subscription and services gross margins. During the reported quarter, the Company's subscription gross margin was approximately 81%, an increase of nearly 200 basis points from the year ago comparable period, primarily driven by the faster growth of its Vault products and non-SFA Commercial Cloud offerings. Veeva's services gross margin for the reported quarter came above 31% compared to approximately 24% in the year ago same period.

For Q1 FY18, Veeva's operating income was $37.3 million compared to $17.8 million in Q1 FY16, reflecting an increase of 110% on a y-o-y basis. The Company's non-GAAP operating income for the reported quarter totaled $50.6 million, surging 72% compared to $29.4 million in the year earlier corresponding quarter.

Veeva's Q1 FY18 net income rocketed 188% to $36.0 million compared to $12.5 million in Q1 FY17. The Company's non-GAAP net income for the reported quarter was $33.3 million compared to $21.2 million in the prior year's same quarter, reflecting an increase of 57% on a y-o-y basis. For Q1 FY18, Veeva's fully diluted net income per share was $0.24 compared to $0.09 in Q1 FY17, while non-GAAP fully diluted net income per share totaled $0.22 versus $0.15 in the year ago comparable period.

Veeva added 80 people net in Q1 FY18 finishing at 1,874, up from 1,542 a year ago. The Company stated that it plans to continue investing with a very aggressive hiring plan for Q2 FY18.

Balance Sheet

During Q1 FY18, Veeva's deferred revenue was $238 million compared to $214 million at the end of Q4 FY17. This resulted in calculated billings of $182 million which was ahead of the Company's guidance of $175 million to $176 million.

Veeva exited Q1 FY18 with cash and short-term investments $664 million compared to $519 million at the end of Q4 FY17. This increase was driven by the Company's performance in cash from operations which came in at $142 million.

Outlook

For Q2 FY18, Veeva is forecasting revenue between $163 million and $164 million, non-GAAP operating income of $46 million to $47 million and non-GAAP net income per share of $0.20. The Company is estimating calculated billings of roughly $145 million in the upcoming quarter.

For FY18, the Company estimates revenue in the range of $665 million to $669 million, an increase from its previous guidance of $655 million to $660 million. For FY18, the Company is anticipating non-GAAP operating income of $191 million to $195 million, a margin of roughly 29%. This is an increase in both dollars and margin from Veeva's previous guidance of $180 million to $185 million and a margin of 27.5% to 28%. The Company is projecting non-GAAP net income per share of between $0.82 and $0.84.

Stock Performance

Veeva Systems' share price finished yesterday's trading session at $59.46, marginally up 0.85%. A total volume of 1.94 million shares have exchanged hands, which was higher than the 3-month average volume of 1.70 million shares. The Company's stock price skyrocketed 21.25% in the last three months, 41.50% in the past six months, and 73.15% in the previous twelve months. Additionally, the stock soared 46.09% since the start of the year. Shares of the Company have a PE ratio of 92.47 and currently have a market cap of $8.28 billion.

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