Veeva Announces Fourth Quarter and Fiscal Year 2024 Results
Fiscal Year 2024 Total Revenues of $2,363.7M, up 10% Year Over Year;
Q4 Total Revenues of $630.6M, up 12% Year Over Year
Fiscal Year 2024 Subscription Services Revenues of $1,901.6M, up 10% Year Over Year;
Q4 Subscription Services Revenues of $521.5M, up 13% Year Over Year
PLEASANTON, Calif., Feb. 29, 2024 /PRNewswire/ -- Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fourth quarter and fiscal year ended January 31, 2024.
"The fourth quarter was a strong finish to an important year for Veeva," said CEO Peter Gassner. "Executing on our long-term industry cloud opportunity, we delivered the Veeva Compass Suite of data products, established the Clinical Platform, and progressed our new Commercial Cloud. These advances will fuel our growth and have a major impact on the industry for years to come."
Fiscal 2024 Fourth Quarter Results:
-- Revenues: Total revenues for the fourth quarter were $630.6 million, up
from $563.4 million one year ago, an increase of 12% year over year.
Subscription services revenues for the fourth quarter were $521.5
million, up from $460.2 million one year ago, an increase of 13% year
over year.
-- Operating Income and Non-GAAP Operating Income((1)): Fourth quarter
operating income was $135.3 million, compared to $108.9 million one year
ago, an increase of 24% year over year. Non-GAAP operating income for
the fourth quarter was $239.1 million, compared to $209.4 million one
year ago, an increase of 14% year over year.
-- Net Income and Non-GAAP Net Income((1)): Fourth quarter net income was
$147.4 million, compared to $188.5 million one year ago, a decrease of
22% year over year. Non-GAAP net income for the fourth quarter was
$226.3 million, compared to $186.3 million one year ago, an increase of
21% year over year.
-- Net Income per Share and Non-GAAP Net Income per Share((1)): For the
fourth quarter, fully diluted net income per share was $0.90, compared
to $1.16 one year ago, while non-GAAP fully diluted net income per share
was $1.38, compared to $1.15 one year ago.
-- Customer Contracting Change: The previously announced customer
contracting change that standardized termination for convenience (TFC)
rights in our master subscription agreements went into effect on
February 1, 2023. This resulted in a change in the timing of revenue for
certain customer contracts to which a TFC right was added and reduced
revenues, operating income and non-GAAP operating income, and net income
and non-GAAP net income in the fourth quarter.
Fiscal Year 2024 Results:
-- Revenues: Total revenues for the fiscal year ended January 31, 2024 were
$2,363.7 million, up from $2,155.1 million one year ago, an increase of
10% year over year. Subscription services revenues were $1,901.6
million, up from $1,733.0 million one year ago, an increase of 10% year
over year.
-- Operating Income and Non-GAAP Operating Income((1)): Fiscal year 2024
operating income was $429.3 million, compared to $459.1 million one year
ago, a decrease of 6% year over year. Non-GAAP operating income for
fiscal year 2024 was $842.5 million, compared to $830.5 million one year
ago, an increase of 1% year over year.
-- Net Income and Non-GAAP Net Income((1)): Fiscal year 2024 net income was
$525.7 million, compared to $487.7 million one year ago, an increase of
8% year over year. Non-GAAP net income for fiscal year 2024 was $791.0
million, compared to $695.6 million one year ago, an increase of 14%
year over year.
-- Net Income per Share and Non-GAAP Net Income per Share((1)): For fiscal
year 2024, fully diluted net income per share was $3.22, compared to
$3.00 one year ago, while non-GAAP fully diluted net income per share
was $4.84, compared to $4.28 one year ago.
-- Customer Contracting Change: The customer contracting change that
standardized TFC rights in our master subscription agreements resulted
in a change in the timing of revenue for certain customer contracts to
which a TFC right was added and reduced revenues, operating income and
non-GAAP operating income, and net income and non-GAAP net income in
fiscal year ended January 31, 2024.
"We ended the year with strong financial results, reflecting our increasing strategic partnership with the industry and continued focused execution," said CFO Brent Bowman. "Our innovation engine, proven operating model, and customer success focus continue to differentiate Veeva and drive our strong, profitable growth."
Recent Highlights:
-- Product Excellence and Customer Success Drive Industry Leadership -
Progressing on its vision to become the most strategic partner to the
life sciences industry, Veeva finished the year with 1,432 customers, up
44 from the year prior. Veeva R&D Solutions ended the year with 1,078
customers and Veeva Commercial Solutions ended the year with a total of
693 customers.((2)(3))
-- Setting a New Standard with Veeva Clinical Platform - As the only
company connecting clinical operations and clinical data management with
11 industry leading solutions today, the Veeva Clinical Platform is
helping connect sponsors, research sites, and patients for more
effective and efficient trials. Given its ability to help improve trial
collaboration end-to-end, the industry is increasingly turning to Veeva
as more than 500 customers now use at least one Veeva Vault Clinical
solution. More than 85 customers have both a clinical operations and
clinical data management product from Veeva.
-- Milestone Quarter for Veeva Data Cloud - In January, Veeva announced the
availability of the complete Veeva Compass Suite of commercial data
products, giving the industry a modern alternative to legacy data
products. Compass uniquely supports the needs of today's medicines
because it includes projected data for both retail products and complex
in-office therapies. Veeva Link also saw major success in the quarter as
the ninth top 20 biopharma selected Veeva Link for Key People for all
therapeutic areas.
Financial Outlook:
Veeva is providing guidance for its fiscal first quarter ending April 30, 2024 as follows:
-- Total revenues between $640 and $643 million.
-- Non-GAAP operating income between $245 and $247 million((4)).
-- Non-GAAP fully diluted net income per share between $1.42 and
$1.43((4)).
Veeva is providing guidance for its fiscal year ending January 31, 2025 as follows:
-- Total revenues between $2,725 and $2,740 million.
-- Non-GAAP operating income of about $1,070 million((4)).
-- Non-GAAP fully diluted net income per share of approximately $6.16((4)).
Conference Call Information
Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, February 29, 2024, and a replay of the call will be available on Veeva's investor relations website.
What: Veeva Systems Fourth Quarter and Fiscal Year 2024 Results
Conference Call
When:
Thursday, February 29, 2024
Time:
2:00 p.m. PT (5:00 p.m. ET)
Online Registration:
https://registrations.events/direct/Q4I879596
Webcast:
ir.veeva.com
___________
((1)) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled "Non-GAAP Financial Measures" and the tables entitled "Reconciliation of GAAP to Non-GAAP Financial Measures" below for details.
((2)) The combined customer counts for Commercial Solutions and R&D Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Commercial Solutions consist of our Veeva Commercial Cloud, Veeva Data Cloud, and Veeva Claims solutions. R&D Solutions consist of our Veeva Development Cloud, Veeva RegulatoryOne, and Veeva QualityOne solutions.
((3)) Customer count totals are presented net of customer attrition during the period.
((4)) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the first fiscal quarter ending April 30, 2024 or fiscal year ending January 31, 2025 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
About Veeva Systems
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. For more information, visit veeva.com.
Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Forward-looking Statements
This release contains forward-looking statements regarding Veeva's expected future performance and, in particular, includes quotes from management and guidance provided as of February 29, 2024 about Veeva's expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, security, or privacy of our products, competitive factors, customer decisions and priorities, events that impact the life sciences industry, general macroeconomic and geopolitical events (including inflationary pressures, changes in interest rates, currency exchange fluctuations, changes in applicable laws and regulations, and impacts related to Russia's invasion of Ukraine and the Israel-Hamas conflict), and issues that impact our ability to hire, retain, and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled "Summary of Risk Factors" on pages 38 and 39 in our filing on Form 10-Q for the period ended October 31, 2023, which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.
###
Investor Relations Contact:
Gunnar Hansen
Veeva Systems Inc.
267-460-5839
ir@veeva.com
Media Contact:
Maria Scurry
Veeva Systems Inc.
781-366-7617
pr@veeva.com
VEEVA SYSTEMS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 31, January 31,
2024 2023
Assets
Current assets:
Cash and cash equivalents $703,487 $886,465
Short-term investments 3,324,269 2,216,163
Accounts receivable, net 852,172 703,055
Unbilled accounts receivable 36,365 82,174
Prepaid expenses and other current assets 86,918 81,456
Total current assets 5,003,211 3,969,313
Property and equipment, net 58,532 49,817
Deferred costs, net 23,916 31,825
Lease right-of-use assets 45,602 55,336
Goodwill 439,877 439,877
Intangible assets, net 63,017 82,476
Deferred income taxes 233,463 136,697
Other long-term assets 43,302 38,955
Total assets $5,910,920 $4,804,296
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $31,513 $41,678
Accrued compensation and benefits 43,433 44,282
Accrued expenses and other current liabilities 32,980 35,306
Income tax payable 11,862 4,946
Deferred revenue 1,049,761 869,285
Lease liabilities 9,334 11,306
Total current liabilities 1,178,883 1,006,803
Deferred income taxes 2,052 1,492
Lease liabilities, noncurrent 46,441 49,670
Other long-term liabilities 38,720 30,079
Total liabilities 1,266,096 1,088,044
Stockholders' equity:
Class A common stock(5) 2 2
Class B common stock(5) -
Additional paid-in capital 1,915,002 1,532,627
Accumulated other comprehensive loss (10,637) (31,129)
Retained earnings 2,740,457 2,214,752
Total stockholders' equity 4,644,824 3,716,252
Total liabilities and stockholders' equity $5,910,920 $4,804,296
(5)Class B common stock was converted to Class A common stock on October 15, 2023. We refer to our Class A common
stock as common stock.
VEEVA SYSTEMS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended Fiscal year ended
January 31, January 31,
2024 2023 2024 2023
Revenues:
Subscription services(6) $521,498 $460,152 $1,901,593 $1,733,002
Professional services and other(7) 109,120 103,237 462,080 422,058
Total revenues 630,618 563,389 2,363,673 2,155,060
Cost of revenues
(8):
Cost of subscription services 77,398 68,913 290,577 257,635
Cost of professional services and other 96,530 95,401 386,714 351,770
Total cost of revenues 173,928 164,314 677,291 609,405
Gross profit 456,690 399,075 1,686,382 1,545,655
Operating expenses
(8):
Research and development 163,565 142,538 629,031 520,278
Sales and marketing 99,203 89,049 381,472 348,691
General and administrative 58,658 58,565 246,545 217,595
Total operating expenses 321,426 290,152 1,257,048 1,086,564
Operating income 135,264 108,923 429,334 459,091
Other income, net 47,429 26,440 158,689 50,005
Income before income taxes 182,693 135,363 588,023 509,096
Income tax provision (benefit) 35,295 (53,170) 62,318 21,390
Net income $147,398 $188,533 $525,705 $487,706
Net income per share:
Basic $0.92 $1.20 $3.27 $3.14
Diluted $0.90 $1.16 $3.22 $3.00
Weighted-average shares used to compute net income per share:
Basic 161,088 156,512 160,532 155,385
Diluted 164,071 162,104 163,486 162,437
Other comprehensive income:
Net change in unrealized gain (loss) on available-for-sale investments $28,135 $15,868 $22,035 $(14,854)
Net change in cumulative foreign currency translation loss (1,237) (1,355) (1,546) (4,317)
Comprehensive income $174,296 $203,046 $546,194 $468,535
(6) Includes subscription services revenues from the following product areas:
Veeva Commercial Solutions $261,882 $242,896 $995,803 $946,252
Veeva R&D Solutions 259,616 217,256 905,790 786,750
Total subscription services $521,498 $460,152 $1,901,593 $1,733,002
(7) Includes professional services and other revenues from the following product areas:
Veeva Commercial Solutions $45,899 $44,161 $185,981 $177,188
Veeva R&D Solutions 63,221 59,076 276,099 244,870
Total professional services and other $109,120 $103,237 $462,080 $422,058
(8) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services $1,626 $1,651 $6,483 $6,257
Cost of professional services and other 13,356 13,307 53,237 50,341
Research and development 42,967 39,430 172,876 141,571
Sales and marketing 23,781 23,010 90,865 87,509
General and administrative 17,163 18,147 70,272 66,229
Total stock-based compensation $98,893 $95,545 $393,733 $351,907
VEEVA SYSTEMS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three months ended Fiscal year ended
January 31, January 31,
2024 2023 2024 2023
Cash flows from operating activities
Net income $147,398 $188,533 $525,705 $487,706
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 8,628 7,679 32,628 29,122
Reduction of operating lease right-of-use assets 2,806 3,136 11,691 12,198
Accretion of discount on short-term investments (7,217) (2,608) (26,515) (3,624)
Stock-based compensation 98,893 95,545 393,733 351,907
Amortization of deferred costs 5,334 4,989 18,177 22,096
Deferred income taxes (25,242) (43,133) (105,374) (127,502)
(Gain) loss on foreign currency from mark-to-market derivative (1,063) (222) (222) 971
Bad debt expense (recovery) 63 (954) 693 256
Changes in operating assets and liabilities:
Accounts receivable (596,731) (459,243) (149,810) (72,177)
Unbilled accounts receivable 8,472 (89) 45,809 (18,908)
Deferred costs (9,517) (8,939) (10,268) (20,815)
Other current and long-term assets 7,220 (43,649) 414 (47,399)
Accounts payable (4,728) 766 (10,230) 21,429
Accrued expenses and other current liabilities 5,323 6,622 (4,249) 9,276
Income taxes payable 5,302 (49,520) 6,916 (2,815)
Deferred revenue 416,284 362,485 188,164 140,472
Operating lease liabilities (2,616) (2,908) (6,879) (10,644)
Other long-term liabilities (840) 4,808 956 8,921
Net cash provided by operating activities 57,769 63,298 911,339 780,470
Cash flows from investing activities
Purchases of short-term investments (555,900) (280,628) (2,697,968) (1,996,878)
Maturities and sales of short-term investments 476,932 245,273 1,647,813 1,002,707
Long-term assets (7,735) (3,907) (26,196) (13,512)
Net cash used in investing activities (86,703) (39,262) (1,076,351) (1,007,683)
Cash flows from financing activities
Proceeds from exercise of common stock options 10,503 13,538 62,687 43,654
Taxes paid related to net share settlement of equity awards (20,987) (15,779) (78,875) (63,030)
Net cash used in financing activities (10,484) (2,241) (16,188) (19,376)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (807) (489) (1,780) (4,986)
Net change in cash, cash equivalents, and restricted cash (40,225) 21,306 (182,980) (251,575)
Cash, cash equivalents, and restricted cash at beginning of period 746,895 868,344 889,650 1,141,225
Cash, cash equivalents, and restricted cash at end of period $706,670 $889,650 $706,670 $889,650
Supplemental disclosures of other cash flow information:
Excess tax benefits from employee stock plans $2,474 $76,028 $71,049 $82,009
Non-GAAP Financial Measures
In Veeva's public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.
-- Excess tax benefits. Excess tax benefits from employee stock plans are
dependent on previously agreed-upon equity grants to our employees,
vesting of those grants, stock price, and exercise behavior of our
employees, which can fluctuate from quarter to quarter. Because these
fluctuations are not directly related to our business operations, Veeva
excludes excess tax benefits for its internal management reporting
processes. Veeva management also finds it useful to exclude excess tax
benefits when assessing the level of cash provided by operating
activities. Given the nature of the excess tax benefits, Veeva believes
excluding it allows investors to make meaningful comparisons between our
operating cash flows from quarter to quarter and those of other
companies.
-- Stock-based compensation expenses. Veeva excludes stock-based
compensation expenses primarily because they are non-cash expenses that
Veeva excludes from its internal management reporting processes. Veeva's
management also finds it useful to exclude these expenses when they
assess the appropriate level of various operating expenses and resource
allocations when budgeting, planning and forecasting future periods.
Moreover, because of varying available valuation methodologies,
subjective assumptions and the variety of award types that companies can
use under FASB ASC Topic 718, Veeva believes excluding stock-based
compensation expenses allows investors to make meaningful comparisons
between our recurring core business operating results and those of other
companies.
-- Amortization of purchased intangibles. Veeva incurs amortization expense
for purchased intangible assets in connection with acquisitions of
certain businesses and technologies. Amortization of intangible assets
is a non-cash expense and is inconsistent in amount and frequency
because it is significantly affected by the timing, size of acquisitions
and the inherent subjective nature of purchase price allocations.
Because these costs have already been incurred and cannot be recovered,
and are non-cash expenses, Veeva excludes these expenses for its
internal management reporting processes. Veeva's management also finds
it useful to exclude these charges when assessing the appropriate level
of various operating expenses and resource allocations when budgeting,
planning and forecasting future periods. Investors should note that the
use of intangible assets contributed to Veeva's revenues earned during
the periods presented and will contribute to Veeva's future period
revenues as well.
-- Income tax effects on the difference between GAAP and non-GAAP costs and
expenses. The income tax effects that are excluded relate to the imputed
tax impact on the difference between GAAP and non-GAAP costs and
expenses due to stock-based compensation and purchased intangibles for
GAAP and non-GAAP measures.
There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva's management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)
The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown
below:
Reconciliation of Net Cash Provided by Operating Activities (GAAP basis Three months ended Fiscal year ended January
to non-GAAP basis) January 31, 31,
---
2024 2023 2024 2023
Net cash provided by operating activities on a GAAP basis $57,769 $63,298 $911,339 $780,470
Excess tax benefits from employee stock plans (2,474) (76,028) (71,049) (82,009)
Net cash provided by (used in) operating activities on a non-GAAP basis $55,295 $(12,730) $840,290 $698,461
Net cash used in investing activities on a GAAP basis $(86,703) $(39,262) $(1,076,351) $(1,007,683)
Net cash used in financing activities on a GAAP basis $(10,484) $(2,241) $(16,188) $(19,376)
Reconciliation of Financial Measures (GAAP basis to non-GAAP basis) Three months ended Fiscal year ended January
January 31, 31,
---
2024 2023 2024 2023
Cost of subscription services revenues on a GAAP basis $77,398 $68,913 $290,577 $257,635
Stock-based compensation expense (1,626) (1,651) (6,483) (6,257)
Amortization of purchased intangibles (1,125) (1,126) (4,468) (4,469)
Cost of subscription services revenues on a non-GAAP basis $74,647 $66,136 $279,626 $246,909
Gross margin on subscription services revenues on a GAAP basis 85.2 % 85.0 % 84.7 % 85.1 %
Stock-based compensation expense 0.3 0.4 0.4 0.4
Amortization of purchased intangibles 0.2 0.2 0.2 0.3
Gross margin on subscription services revenues on a non-GAAP basis 85.7 % 85.6 % 85.3 % 85.8 %
Cost of professional services and other revenues on a GAAP basis $96,530 $95,401 $386,714 $351,770
Stock-based compensation expense (13,356) (13,307) (53,237) (50,341)
Amortization of purchased intangibles (139) (139) (550) (550)
Cost of professional services and other revenues on a non-GAAP basis $83,035 $81,955 $332,927 $300,879
Gross margin on professional services and other revenues on a GAAP basis 11.5 % 7.6 % 16.3 % 16.7 %
Stock-based compensation expense 12.3 12.9 11.6 11.9
Amortization of purchased intangibles 0.1 0.1 0.1 0.1
Gross margin on professional services and other revenues on a non-GAAP basis 23.9 % 20.6 % 28.0 % 28.7 %
Gross profit on a GAAP basis $456,690 $399,075 $1,686,382 $1,545,655
Stock-based compensation expense 14,982 14,958 59,720 56,598
Amortization of purchased intangibles 1,264 1,265 5,018 5,019
Gross profit on a non-GAAP basis $472,936 $415,298 $1,751,120 $1,607,272
Gross margin on total revenues on a GAAP basis 72.4 % 70.8 % 71.3 % 71.7 %
Stock-based compensation expense 2.4 2.7 2.6 2.7
Amortization of purchased intangibles 0.2 0.2 0.2 0.2
Gross margin on total revenues on a non-GAAP basis 75.0 % 73.7 % 74.1 % 74.6 %
Research and development expense on a GAAP basis $163,565 $142,538 $629,031 $520,278
Stock-based compensation expense (42,967) (39,430) (172,876) (141,571)
Amortization of purchased intangibles (29) (29) (114) (113)
Research and development expense on a non-GAAP basis $120,569 $103,079 $456,041 $378,594
Three months ended Fiscal year ended January
January 31, 31,
2024 2023 2024 2023
Sales and marketing expense on a GAAP basis $99,203 $89,049 $381,472 $348,691
Stock-based compensation expense (23,781) (23,010) (90,865) (87,509)
Amortization of purchased intangibles (3,552) (3,555) (14,102) (14,105)
Sales and marketing expense on a non-GAAP basis $71,870 $62,484 $276,505 $247,077
General and administrative expense on a GAAP basis $58,658 $58,565 $246,545 $217,595
Stock-based compensation expense (17,163) (18,147) (70,272) (66,229)
Amortization of purchased intangibles (56) (57) (225) (227)
General and administrative expense on a non-GAAP basis $41,439 $40,361 $176,048 $151,139
Operating expense on a GAAP basis $321,426 $290,152 $1,257,048 $1,086,564
Stock-based compensation expense (83,911) (80,587) (334,013) (295,309)
Amortization of purchased intangibles (3,637) (3,641) (14,441) (14,445)
Operating expense on a non-GAAP basis $233,878 $205,924 $908,594 $776,810
Operating income on a GAAP basis $135,264 $108,923 $429,334 $459,091
Stock-based compensation expense 98,893 95,545 393,733 351,907
Amortization of purchased intangibles 4,901 4,906 19,459 19,464
Operating income on a non-GAAP basis $239,058 $209,374 $842,526 $830,462
Operating margin on a GAAP basis 21.4 % 19.3 % 18.2 % 21.3 %
Stock-based compensation expense 15.7 17.0 16.6 16.3
Amortization of purchased intangibles 0.8 0.9 0.8 0.9
Operating margin on a non-GAAP basis 37.9 % 37.2 % 35.6 % 38.5 %
Net income on a GAAP basis $147,398 $188,533 $525,705 $487,706
Stock-based compensation expense 98,893 95,545 393,733 351,907
Amortization of purchased intangibles 4,901 4,906 19,459 19,464
Income tax effect on non-GAAP adjustments(9) (24,867) (102,691) (147,937) (163,508)
Net income on a non-GAAP basis $226,325 $186,293 $790,960 $695,569
Diluted net income per share on a GAAP basis $0.90 $1.16 $3.22 $3.00
Stock-based compensation expense 0.60 0.59 2.41 2.17
Amortization of purchased intangibles 0.03 0.03 0.12 0.12
Income tax effect on non-GAAP adjustments(9) (0.15) (0.63) (0.91) (1.01)
Diluted net income per share on a non-GAAP basis $1.38 $1.15 $4.84 $4.28
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(9) For the three months and fiscal years ended January 31, 2024 and 2023, management used an estimated annual effective non-GAAP
tax rate of 21.0%.
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SOURCE Veeva Systems
