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Veeva Systems (VEEV) Q4 Earnings and Revenues Beat Estimates

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Zacks Equity Research
·5 min read
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Veeva Systems, Inc. VEEV reported fourth-quarter fiscal 2021 adjusted earnings per share (EPS) of 78 cents, beating the Zacks Consensus Estimate of 68 cents by 14.7%. Moreover, the metric surged 44.4% on a year-over-year basis.

For fiscal 2021, adjusted EPS came in at $2.94, beating the Zacks Consensus Estimate by 3.5%. Also the bottom line grew 34.2% year over year.

Revenues

For the quarter, the company’s revenues totaled $396.8 million, outpacing the Zacks Consensus Estimate by 4.4%. On a year-over-year basis, the top line improved 27.4%.

For fiscal 2021, revenues summed $1.47 billion, beating the Zacks Consensus Estimate by 1.4%.The topline also surged 33.6% year over year.

Segmental Details

Subscription Service

Fiscal fourth-quarter subscription service revenues totaled $322.8 million, up 27% year over year.

Professional Service and Others

Professional Service revenues rose 28.7% to $73.9 million from the year-ago figure.

Per management, solid performances by Veeva Commercial Cloud and Veeva Vault drove revenues across all segments.

Margin Details

In the reported quarter, gross profit increased 30.3% year over year to $282.9 million. Gross margin was 71.3%, which expanded 158 basis points (bps).

Total operating cost came in at $184.1 million, up 17.4%.

Operating profit totaled $98.8 million, up 63.7% year over year. In the quarter under review, operating margin rose 553 bps to 24.9%.

Veeva Systems Inc. Price, Consensus and EPS Surprise

Veeva Systems Inc. Price, Consensus and EPS Surprise
Veeva Systems Inc. Price, Consensus and EPS Surprise

Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systems Inc. Quote

Cash Position

The company exited the fiscal fourth quarter with cash and cash equivalents of $730.5 million compared with $476.7 million at the end of the year-ago period.

Cumulative net cash provided by operating activities came in at $551.2 million, up from $437.4 million at the end of the year-ago period.

Guidance

For the first quarter of fiscal 2022, Veeva Systems expects revenues between $408 million and $410 million. The Zacks Consensus Estimate for the same stands at $400.4 million.

Adjusted EPS is projected between 77 and 78 cents. The Zacks Consensus Estimate for the metric is pegged at 74 cents.

Adjusted operating income is estimated between $157 million and $159 million.

For fiscal 2022, revenues are expected within $1.76 and $1.77 billion (up from the previously issued guided range of $1.70-$1.72 billion). The Zacks Consensus Estimate for the same is pegged at $1.72 billion.

Adjusted EPS is expected to be $3.20. The Zacks Consensus Estimate for the same stands at $3.11.

Adjusted operating income is anticipated to be around $655 million.

Wrapping Up

Veeva Systems ended the fourth quarter of fiscal 2021 on a strong note. The core Subscription business and Professional Service segments performed impressively. A raised guidance for the next fiscal year buoys optimism as well.Apart from these, the company continues to benefit from its flagship Vault platform. In fact, Veeva Vault’s customer count increased manifold in recent times. Markedly, the company’s unique solutions include Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData. Its new CRM Sunrise UI and Nitro look promising too. Expansion of both margins is a further positive.

In Commercial Cloud, Veeva Systems secured a number of deals. The company is confident about growth in new markets with product menu comprising EDC, Safety, Nitro and Vault.The addition of Veeva CRM Engage Meeting, new remote monitoring capabilities in Veeva SiteVault Free and Telehealth Metrics to the Crossix Data Platform raises optimism.

On the flip side, operating costs grew during the quarter. Also, intense competition and a saturating life sciences market are concerning. Volatility in the foreign currency exchange rate is an added woe.

Zacks Rank and Key Picks

VeevaSystems currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space that already announced quarterly results are Hologic, Inc. HOLX, Abbott Laboratories ABT and AngioDynamics, Inc. ANGO, each presently carrying a Zacks Rank#2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.

Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Further, fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.

AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny. The Zacks Consensus Estimate was pegged at a loss of two centsper share. Additionally, revenues of $72.8 million beat the consensus mark by 8%.

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