VEEVA SYSTEMS INC
For the period ended Apr 30, 2025. Filed Jun 2, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 30, 2025 · Filed Jun 2, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 2. Results of Operations
Results of Operations
The following tables set forth selected condensed consolidated statements of operations data and such data as a percentage of total revenues for each of the periods indicated:
| Three months ended April 30, | ||
|---|---|---|
| 2025 | 2024 | |
| (in thousands) | ||
| Consolidated Statements of Comprehensive Income Data: | ||
| Revenues: | ||
| Subscription services | $634,768 | $533,955 |
| Professional services and other | 124,275 | 116,390 |
| Total revenues | 759,043 | 650,345 |
| Cost of revenues (1): | ||
| Cost of subscription services | 78,346 | 78,148 |
| Cost of professional services and other | 95,478 | 95,736 |
| Total cost of revenues | 173,824 | 173,884 |
| Gross profit | 585,219 | 476,461 |
| Operating expenses (1): | ||
| Research and development | 184,033 | 162,711 |
| Sales and marketing | 98,628 | 97,301 |
| General and administrative | 68,826 | 61,277 |
| Total operating expenses | 351,487 | 321,289 |
| Operating income | 233,732 | 155,172 |
| Other income, net | 65,089 | 51,729 |
| Income before income taxes | 298,821 | 206,901 |
| Income tax provision | 70,631 | 45,237 |
| Net income | $228,190 | $161,664 |
| (1) Includes stock-based compensation as follows: | ||
| Cost of revenues: | ||
|---|---|---|
| Cost of subscription services | $1,715 | $1,554 |
| Cost of professional services and other | 12,769 | 12,535 |
| Research and development | 47,949 | 41,743 |
| Sales and marketing | 22,321 | 23,043 |
| General and administrative | 27,456 | 17,036 |
| Total stock-based compensation | $112,210 | $95,911 |
Revenues
| Three months ended April 30, | |||
|---|---|---|---|
| 2025 · 2024 · % Change | |||
| (dollars in thousands) | |||
| Revenues: | |||
| Subscription services | $634,768 | $533,955 | 19% |
| Professional services and other | 124,275 | 116,390 | 7% |
| Total revenues | $759,043 | $650,345 | 17% |
| Percentage of revenues: | |||
| Subscription services | 84% | 82% | |
| Professional services and other | 16 | 18 | |
| Total revenues | 100% | 100% | |
Total revenues for the three months ended April 30, 2025 increased $109 million, of which $101 million was from growth in subscription services revenue.
| 22 | Veeva Systems Inc. | Form 10-Q |
The increase in subscription services revenues consisted of $57 million attributable to R&D Solutions and $44 million attributable to Commercial Solutions. The increase in subscription services revenue attributable to R&D solutions was driven by Veeva Development Cloud products primarily due to the expanding use by existing customers and, to a lesser extent, due to higher prices in connection with our annual inflation adjustment. The increase in subscription services revenue attributable to Commercial Solutions was primarily due to expanding use of our Veeva Commercial Cloud and Veeva Data Cloud products by existing customers and, to a lesser extent, due to higher prices in connection with our annual inflation adjustment for Veeva Commercial Cloud products. The geographic mix of subscription services revenues was 61% from North America, 27% from Europe, and 12% from other locations, primarily Asia Pacific, for the three months ended April 30, 2025, as compared to 59% from North America, 28% from Europe, and 13% from other locations, primarily Asia Pacific, for the three months ended April 30, 2024.
Professional services and other revenues for the three months ended April 30, 2025 increased $8 million. The increase was primarily due to an increase in business consulting services. The geographic mix of professional services and other revenues was 60% from North America, 34% from Europe, and 6% from other locations, primarily Asia Pacific, for the three months ended April 30, 2025, as compared to 59% from North America, 35% from Europe, and 6% from other locations, primarily Asia Pacific, for the three months ended April 30, 2024.
Cost of Revenue and Gross Margin
| Three months ended April 30, | |||
|---|---|---|---|
| 2025 | 2024 | % Change | |
| (dollars in thousands) | |||
| Cost of revenues: | |||
| Cost of subscription services | $78,346 | $78,148 | —% |
| Cost of professional services and other | 95,478 | 95,736 | —% |
| Total cost of revenues | $173,824 | $173,884 | —% |
| Gross margin percentage: | |||
| Subscription services | 88% | 85% | |
| Professional services and other | 23% | 18% | |
| Total gross margin percentage | 77% | 73% | |
| Gross profit | $585,219 | $476,461 | 23% |
Cost of revenues for the three months ended April 30, 2025 remained flat as compared to the three months ended April 30, 2024.
We expect cost of subscription services to increase in absolute dollars in the near term due to increased usage of our subscription services.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.