Veeva Systems Inc (VEEV) Reports 12% Revenue Growth in Q3 Fiscal 2024
Total revenues reached $616.5 million, marking a 12% increase year over year.
Non-GAAP net income saw a significant rise of 19% year over year.
Veeva Systems Inc (NYSE:VEEV) provides a positive financial outlook for the upcoming fiscal year.
The company continues to innovate and expand in the life sciences industry cloud solutions market.
On December 6, 2023, Veeva Systems Inc (NYSE:VEEV) released its 8-K filing, announcing its financial results for the third quarter of fiscal year 2024. The company reported a robust 12% year-over-year increase in total revenues, which amounted to $616.5 million. Subscription services were a significant contributor, also growing by 12% compared to the same period last year, reaching $494.9 million.
Financial Performance Highlights
Veeva Systems Inc (NYSE:VEEV) demonstrated solid financial growth in the third quarter. Operating income increased by 6% year over year to $128.5 million, while non-GAAP operating income rose by 7% to $234.6 million. Net income experienced a notable surge of 25% from the previous year, totaling $135.2 million. This growth translated into a fully diluted net income per share of $0.83, up from $0.67 in the same quarter last year. Non-GAAP fully diluted net income per share also saw an increase, reaching $1.34 compared to $1.13 year over year.
Strategic Developments and Future Outlook
CEO Peter Gassner highlighted the company's continued progress in areas such as Vault CRM and the introduction of new innovations within the Veeva Commercial Cloud. These developments are expected to drive durable, profitable growth in the future. CFO Brent Bowman expressed confidence in the company's trajectory towards long-term targets, emphasizing the early stages of a large and growing opportunity.
We are managing the business well and continue to track towards our longer term targets," said CFO Brent Bowman. "Were in the early innings of a large and growing opportunity, and we believe our software, data, and high-value services will enable us to drive growth and profitability through 2030 and beyond."
For the fiscal fourth quarter ending January 31, 2024, Veeva Systems Inc (NYSE:VEEV) anticipates total revenues between $620 and $622 million, with a non-GAAP operating income of about $227 million and non-GAAP fully diluted net income per share of approximately $1.30. The company also updated its guidance for the fiscal year ending January 31, 2024, projecting total revenues between $2,353 and $2,355 million, non-GAAP operating income of about $830 million, and non-GAAP fully diluted net income per share of approximately $4.76. Additionally, Veeva reiterates its fiscal year 2025 guidance, expecting total revenues of at least $2,750 million and non-GAAP operating income of at least $1,000 million.
Financial Statements Overview
The balance sheet as of October 31, 2023, shows that Veeva Systems Inc (NYSE:VEEV) has a strong cash and cash equivalents position of $743.7 million, with total current assets amounting to $4.3 billion. The company's total assets stood at $5.2 billion, while total liabilities were $846.0 million, resulting in a healthy total stockholders' equity of $4.4 billion.
The income statement reflects the company's revenue growth, with a 12% increase in total revenues and a 25% increase in net income year over year. The cash flow statement details the operational efficiency and financial health of Veeva Systems Inc (NYSE:VEEV), with significant cash generated from operations.
Investor and Media Relations
Investors and media can find additional information and analysis in the investor presentation on Veeva's investor relations website. A Q&A conference call was held on December 6, 2023, and a replay is available on the investor relations website.
Veeva Systems Inc (NYSE:VEEV) continues to assert its leadership in the life sciences industry cloud solutions market, backed by strong financial results and a positive outlook for the future. The company's commitment to innovation and customer success positions it well for sustained growth and profitability.
Explore the complete 8-K earnings release (here) from Veeva Systems Inc for further details.
This article first appeared on GuruFocus.
