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1. Company Snapshot

1.a. Company Description

Veeva Systems Inc.provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, the Middle East, Africa, and Latin America.The company offers Veeva Commercial Cloud, a suite of software, data, and analytics solutions, which include Veeva customer relationship management (CRM) and Veeva Medical CRM, Veeva CLM, Veeva CRM MyInsights, Veeva CLM, Veeva CRM Approved Email, Veeva CRM Engage, Veeva Align, Veeva CRM Events Management, Veeva Nitro, Veeva OpenData, Veeva Link, Veeva Network, Veeva Crossix, Veeva Data Cloud, and MyVeeva for Patients; and Veeva Vault, a cloud-based enterprise content and data management applications for managing commercial functions, including sales and marketing, and medical content and communications, as well as research and development functions, such as clinical, regulatory, quality, and safety.


It also provides professional and support services in the areas of implementation and deployment planning and project management; requirements analysis, solution design, and configuration; systems environment management and deployment services; services focused on advancing or transforming business and operating processes related to Veeva solutions; technical consulting services related to data migration and systems integrations; training on its solutions; and ongoing managed services that include outsourced systems administration.The company was formerly known as Verticals onDemand, Inc.and changed its name to Veeva Systems Inc.


in April 2009.Veeva Systems Inc.was incorporated in 2007 and is headquartered in Pleasanton, California.

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1.b. Last Insights on VEEV

Veeva Systems' recent performance was negatively impacted by slowing growth and declining Return on Invested Capital (ROIC), raising concerns about its competitive edge. Despite strong Q3 results, customer migration issues and weak guidance signal potential challenges. The company's robust balance sheet and industry specialization remain strengths, but projected revenue growth and margin pressures make its current valuation appear high. Additionally, a cautious outlook on international revenue trends and higher costs may have contributed to the negative sentiment.

1.c. Company Highlights

2. Veeva Systems' Strong Q3 Earnings: A Deeper Dive

Veeva Systems Inc. reported a robust fiscal 2026 third-quarter performance, with total revenue reaching $811 million and non-GAAP operating income of $365 million, surpassing guidance. Earnings per share (EPS) came in at $2.04, beating estimates of $1.95. The company's gross margins on subscriptions remained stable year over year, a testament to its pricing power and operational efficiency. With a strong top-line growth and expanding margins, Veeva is on track to deliver a solid fiscal year.

Publication Date: Dec -02

📋 Highlights
  • Revenue Growth:: Total revenue reached $811 million with non-GAAP operating income of $365 million, exceeding guidance.
  • CRM Risk Mitigation:: CRM accounts for ~20% of revenue; potential customer migration risks are deemed immaterial for 2024 and 2025.
  • Crossix Expansion:: Crossix growth accelerated this year, driven by measurement and audiences, with low to mid-teens growth expected to persist.
  • Veeva AI Adoption:: Over 100 customers signed up for Veeva Basics, targeting small biotechs, and AI integration spans all product lines by 2026.
  • Industry Cloud Momentum:: 20 of the top 20 biopharma companies selected Veeva for ETMF, reinforcing dominance in life sciences cloud solutions.

Revenue Growth and Diversification

Veeva's revenue growth is driven by its diverse portfolio of products and services. The company's CRM Suite, which accounts for about 20% of total revenue, is facing competition from Salesforce, but management is confident of winning back clients who may leave. The company's focus on expanding its Development Cloud, Quality Cloud, and commercial offerings is expected to drive growth. As per the management, "each retained customer has the potential to adopt more products, such as service center, marketing automation, and Veeva AI."

AI-Driven Innovation

Veeva is making significant progress in its Veeva AI initiative, with customers looking for practical solutions to automate industry-specific applications. The company's AI-driven platform is expected to transform clinical operations and drive productivity gains. Management believes that AI will have a broad impact across all areas, including safety, clinical, commercial, and regulatory.

Valuation and Growth Expectations

With a P/E Ratio of 45.74 and P/S Ratio of 12.83, Veeva's valuation reflects its strong growth prospects. Analysts estimate next year's revenue growth at 16.2%. While the valuation may seem rich, it is justified by the company's strong track record of execution and its expanding addressable market. Veeva's ROE of 13.38% and ROIC of 9.19% indicate a strong return on equity and invested capital.

Partnerships and Competitive Advantage

Veeva's partnership with IQVIA is progressing well, driving growth in its data and software businesses. The company's connected platform and industry cloud approach provide a significant competitive advantage. Management is confident that its focus on execution, integration, and account partnerships will drive growth and expand its market share.

3. NewsRoom

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Veeva to Present at Upcoming Investor Conference

Dec -04

Source: prnewswire.com

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Les agents de Veeva AI sont désormais disponibles pour accroître la productivité et la centralité client

Dec -04

Source: prnewswire.com

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Why Veeva Systems' Earnings Drop Aligns With Its Long-Term Structural Weakness

Dec -03

Source: benzinga.com

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Veeva AI Agents Now Available to Increase Productivity and Customer Centricity

Dec -03

Source: prnewswire.com

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Head to Head Review: KORU Medical Systems (NASDAQ:KRMD) and Veeva Systems (NYSE:VEEV)

Dec -03

Source: defenseworld.net

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2 Growth Stocks With More Room to Run to Buy Ahead of 2026

Dec -02

Source: fool.com

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Veeva Systems: Unjustified Sell-Off, Justified Opportunity

Dec -01

Source: seekingalpha.com

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Burlington Stores, Oracle, Nutanix Are Among Top 10 Large Cap Losers Last Week (Nov. 24-Nov. 28): Are the Others in Your Portfolio?

Nov -30

Source: feeds.benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.90%)

6. Segments

Internet Software & Services

Expected Growth: 11.9%

The expected growth rate is based on the global revenue growth hypothesis. Veeva's strong position in the life sciences industry, coupled with the growing demand for cloud-based software solutions, supports this growth rate. The company's consistent innovation and expansion into new areas within the life sciences sector further justify this expectation.

7. Detailed Products

Veeva CRM

A cloud-based customer relationship management (CRM) solution designed specifically for the life sciences industry.

Veeva Vault

A cloud-based content management platform that enables life sciences companies to manage regulated content, including documents, images, and videos.

Veeva Network

A cloud-based master data management solution that enables life sciences companies to manage their customer and product data.

Veeva Commercial Cloud

A cloud-based commercial platform that enables life sciences companies to manage their commercial operations, including sales, marketing, and customer service.

Veeva QualityOne

A cloud-based quality management system (QMS) that enables life sciences companies to manage their quality processes, including document control, training, and audits.

Veeva R&D

A cloud-based research and development (R&D) platform that enables life sciences companies to manage their R&D processes, including clinical trials, regulatory submissions, and product development.

8. Veeva Systems Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Veeva Systems Inc. has a low threat of substitutes due to its unique cloud-based software solutions for the life sciences industry, making it difficult for competitors to replicate its offerings.

Bargaining Power Of Customers

Veeva Systems Inc. has a medium bargaining power of customers, as its customers are primarily large pharmaceutical and biotechnology companies that have some negotiating power, but are also dependent on Veeva's specialized software solutions.

Bargaining Power Of Suppliers

Veeva Systems Inc. has a low bargaining power of suppliers, as it is a dominant player in the life sciences software market and has a strong negotiating position with its suppliers.

Threat Of New Entrants

Veeva Systems Inc. has a low threat of new entrants, as the life sciences software market is highly specialized and requires significant expertise and resources to enter, making it difficult for new competitors to emerge.

Intensity Of Rivalry

Veeva Systems Inc. operates in a moderately competitive market, with a few established players, but its strong brand recognition and customer loyalty help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.19%
Debt Cost 3.95%
Equity Weight 98.81%
Equity Cost 7.74%
WACC 7.69%
Leverage 1.20%

11. Quality Control: Veeva Systems Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
HCA Healthcare

A-Score: 5.9/10

Value: 6.5

Growth: 7.2

Quality: 5.0

Yield: 2.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Cencor

A-Score: 5.7/10

Value: 2.8

Growth: 6.8

Quality: 4.0

Yield: 2.0

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Veeva Systems

A-Score: 5.4/10

Value: 0.5

Growth: 8.2

Quality: 8.8

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

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Amgen

A-Score: 5.4/10

Value: 2.9

Growth: 5.2

Quality: 6.8

Yield: 6.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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GE HealthCare

A-Score: 3.7/10

Value: 4.4

Growth: 3.8

Quality: 6.8

Yield: 0.0

Momentum: 2.5

Volatility: 4.7

1-Year Total Return ->

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Centene

A-Score: 3.6/10

Value: 9.3

Growth: 5.7

Quality: 3.3

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

242.0$

Current Price

242$

Potential

-0.00%

Expected Cash-Flows